BT Group PLC (BT.L): TalkTalk Q1 continues theme of UK fixed ARPU deterioration and reminds of tough market backdrop

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BT Group PLC (BT.L): TalkTalk Q1 continues theme of UK fixed ARPU deterioration and reminds of tough market backdrop

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30 Jul 2026 04:26:40 ET │ 11 pages

BT Group PLC (BT.L)

TalkTalk Q1 continues theme of UK fixed ARPU deterioration and reminds

of tough market backdrop

CITI'S TAKE Sell

Price (29 Jul 26 16:30) £2.06 TalkTalk, which is BT's retail competitor but also one of Openreach's main

Target price £1.75 wholesale customers, has published Q1'27 results (to May 2026), which

show ongoing broadband base shrinkage and ARPU turning to decline. Expected share price return -15.0%

From a read-across perspective to BT, the ongoing broadband decline is a Expected dividend yield 4.1%

negative for Openreach, while TalkTalk turning to ARPU decline follows on Expected total return -11.0%

from BT reporting -2% Consumer broadband ARPU (-1% in the previous Market Cap £20,533M

quarter) and Virgin Media O2 -4.6% (-1.6% in the previous quarter). This US$27,455M

trend of worsening ARPU growth reminds us of the pressures facing the

UK fixed telecoms market. To remind, the Telegraph on 10-Jun-2025

reported that BT was considering a bid for TalkTalk, Sky News on 23-Jan-

2026 suggested that TalkTalk had begun contacting suitors for its Carl Murdock-Smith, CFAAC

consumer and PXC divisions, while the Financial Times on 9-Jun-2026 +44-20-7986-5747

wrote that VodafoneThree was among several parties to submit bids for carl.murdocksmith@citi.com

TalkTalk. Rohit Modi

rohit1.modi@citi.com

TalkTalk Q1 financials and KPIs – revenue and base declines continue, albeit SAC Nitai Chandode

reduced; ARPU turns to decline; interesting to see alt-net mix reduce nitai.chandode@citi.com

TalkTalk’s Q1’27 (quarter ending May 2026) consolidated revenue of £292m is -14%